Disposal

RNS Number : 3648S

Camellia PLC

08 September 2010

 



Camellia Plc

Disposal 

8 September 2010

Camellia Plc announces that an agreement has been entered into whereby Summit Industrial & Mercantile Corporation (Pvt) Ltd, Cosmopolitan Traders (Pvt) Ltd and their associates ("the Purchasers") will acquire the Camellia group's entire shareholdings in its Bangladeshi associated undertakings, United Insurance Company Limited ("UIC") and United Leasing Company Limited ("ULC"). The transaction is subject to various regulatory consents in Bangladesh.

The Purchasers, which are all Bangladeshi companies, will purchase the group's 33.24% interest in UIC for Taka.1,204 million and its 30.93% interest in ULC for Taka. 2,217 million. At current exchange rates this equates to £11.1 million and £20.5 million respectively. The Purchasers have made a cash payment equal to 10% of the purchase price with the balance to be paid in cash on completion which will take place no later than 15 November 2010.  The Purchasers will forfeit this amount should they not complete the purchase for any reason other than failure to receive regulatory consent. The proceeds will be used to reduce the group's borrowings in Bangladesh, for investment in the Camellia group's on-going operations and other general corporate purposes.

Based on audited accounts as at 31 December 2009, the Camellia group's share of the gross assets of UIC and ULC was £2.40 million and £29.96 million respectively. The group's share of net assets was £1.22 million (UIC) and £4.05 million (ULC) and its share of profit was £68,000 (UIC) and £573,000 (ULC).

Camellia Plc expects the disposals to result in an estimated profit before tax of £24 million being £9 million in respect of UIC and £15 million in respect of ULC. This profit will be included in the current year's results.

Further enquiries please contact Camellia Plc

Malcolm Perkins

01622 746655

 

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